MANILA, Philippines - Prospects are bright for the Philippines this year as its economy is expected to expand by 4.2%, and its currency seen to hit P43.5 to the dollar by year-end.
Frederic Neumann, HSBC senior economist, said the country's economic growth for 2010 will be supported by stronger remittances and higher government spending.
"Looking ahead, the Philippines will see a sharp rebound in growth," Neumann told reporters.
Despite the rosy outlook, however, Neumann warned that the country's inflation rate may rise to 5.1% this year from last year's 3.2%.
Given this, he called on the central bank to begin tightening monetary policy.
The Philippine economy was expected to expand by a meager 1.1% in 2009. For the first 3 quarters last year, the country posted a 0.7% growth in gross domestic product (GDP).
GDP figures for the last quarter and the whole of 2009 are set to be released on January 28.
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